Industry agrees energy efficiency targets extension with government

A new Climate Change Agreements scheme started yesterday where the UK Energy Intensive Industries have agreed to stretch their energy efficiency improvements target to 2020. This would create an overall 11% energy efficiency improvement across all industry sectors by 2020.

The scheme will offer an extension to the Climate Change Levy rebate for energy intensive industries until 2023 in return for meeting energy efficiency targets. The Environment Agency are implementing and managing the scheme.

So far, 51 industrial sectors have signed up to the scheme across 9,000 sites. Signatories include those of the steel, aerospace and farming industry. The savings will be made from the introduction of cost-effective measures such as variable speed drivers, energy efficient boilers and improved energy systems. If all sectors meet their targets from 2013-2020 this would:

1. Reduce primary energy consumption by approximately 100TWh; 2. Reduce emissions of carbon dioxide by 19 million tonnes; and 3. Deliver estimated savings of £300 million each year to participants of the Climate Change Levy.

Minister for Climate Change, Gregory Barker said:

“I am really impressed by the commitment shown by the UK Energy Intensive Industry to improving their competitiveness and energy efficiency. This partnership with Government demonstrates our commitment to growth.” Chair of the CCA Working Group of the UK Emissions Trading Group, Ray Gluckman said:

“The ETG appreciates the extensive consultation undertaken by DECC on this important element of climate change and energy efficiency policy. This has enabled industry to work with Government and the EA to help streamline and improve the operation of CCAs. The targets are challenging but provide industry with some degree of certainty over the goals to be achieved over the next 8 years.”